CTV Ad Strategies: Streaming Reaches 50% of Upfront Ad Dollars

Epic Games is making changes to how they roll out their Fortnite IP after facing backlash from creators. The 2025 upfront season is wrapping up, with digital media poised to take over a significant portion of advertising spend, creating a new landscape for negotiations.

Clients are favoring cheaper CPMs, but the challenge lies in the high cost of streaming video. Sellers need to focus on offering detailed measurement of return on ad spend (ROAS) and understanding CPM structures to win over advertisers. As streaming ad spend is set to surpass linear TV investments, these factors are key.

At Digiday’s recent CTV Ad Strategies event in Manhattan, attendees expressed frustrations and successes in navigating the merging worlds of linear TV and streaming. Concerns revolved around understanding costs, proving ROI promptly, and ensuring transparency in ad placements.

IPG Mediabrands’ Dani Benowitz highlighted that streaming is at a tipping point, with over 50% of upfront ad spend expected to shift to streaming platforms. The introduction of sports content on streaming services has accelerated this trend, with an estimated $12 billion going towards streaming in 2025.

On the programmatic front, Wpromote’s Skyler McGill noted that buyers are streamlining their partnerships to just a few key platforms like Amazon DSP, Google DV 360, or The Trade Desk. Buyers are seeking ways to lower markups on tech and data fees, creating a “buyer’s market” dynamic in programmatic trading.

Danone’s Kevin Manke emphasized the importance of better data for higher premiums in CTV advertising. Media owners need to provide advertisers with in-depth audience insights to help reach the projected $30 billion ad spend in the U.S. this year. As the CTV market continues to grow, understanding audience behavior will be crucial for advertisers.